A business restructure — whether it’s creating a holding company, moving assets between group entities, or converting from a sole trader to a limited company — is a significant step with long-term implications.
The legislation around restructuring (S586, S587, S615 and others) is powerful but technical. These sections can allow certain transactions to happen without triggering immediate tax charges — but the conditions are specific, and getting them wrong can be costly.
A restructure will naturally be more time-consuming and more expensive than a straightforward piece of advice. That’s why I always make sure you understand all the pros and cons — what may happen in the short term and the medium term — so that when you pull the trigger, you’re totally clear about the decision you’re making.
It’s also worth noting that incorporation isn’t always the answer. If you’re a sole trader and you need most of the income you’re generating for personal needs, creating a limited company structure may be the wrong step. It only makes sense under the right circumstances.
The bottom line: restructuring is a planning exercise, not an administrative one. It needs to be done for the right reasons, at the right time, with full awareness of the tax consequences.
Considering a restructure? Let’s talk through the options before you commit.
